Kurt Petersen - Diamcor Mining Chief Officer

Diamcor Mining has accumulated 248.76 K in total debt with debt to equity ratio (D/E) of 617.9, indicating the company may have difficulties to generate enough cash to satisfy its financial obligations. Diamcor Mining has a current ratio of 0.25, indicating that it has a negative working capital and may not be able to pay financial obligations in time and when they become due. Debt can assist Diamcor Mining until it has trouble settling it off, either with new capital or with free cash flow. So, Diamcor Mining's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Diamcor Mining sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Diamcor to invest in growth at high rates of return. When we think about Diamcor Mining's use of debt, we should always consider it together with cash and equity.